DFI KidsPage  History
of Money
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 A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

A record of financial transactions for an asset (usually money) that an individual has in their financial institution.
account statement
The record of transactions and their effect on account balances over a specified period of time, for a given account.
The increase in value (price) of something.
The amount of money in an account, equal to the net of withdrawals and deposits at that point in time for that account.
An organization, usually a corporation, chartered by a state or federal government, which does most or all of the following: receives deposits, pays interest on them, makes loans, invests in securities, and collects checks.
A person, firm, or corporation that has been declared to have no money by the court and does not have to pay back any of their debt after all their assets (belongings) are taken away.
board of directors
Individuals elected by shareholders to oversee the management of the financial institution. The members of a board of directors are paid in cash and/or stock, except for credit union board members who are unpaid volunteers serving as representatives of the entire membership. Boards meet several times each year and assume legal responsibility for the institution’s activities.
A certificate issued for a period of more than one year with the purpose of raising capital by borrowing. The federal government, states, cities, corporations, and many other types of institutions sell bonds. A bond is generally a promise to repay the principal along with interest on a specific date.
bounced check
A check which a bank returns because it is not payable because there is no money in the account.
A piece of paper that represents money drawn against deposited funds, to pay a specified amount of money to a specific person upon demand.
A booklet of blank checks which enable a bank account holder to draw money from his/her checking account.
checking account
An account which allows the holder to write checks against deposited funds.
credit union
A cooperative financial institution, chartered by a state or federal government, which is member-owned. Credit Unions serve groups that share something in common, such as where they work, live, or go to church. They are not-for-profit institutions, and exist to provide a safe, convenient place for members to save money and get loans at reasonable rates.
An individual who buys goods for personal use and not for manufacture or resale.
Any form of money that is in public circulation.
Money given in advance to show intention to complete the purchase of a property.
A payment declared by a company’s board of directors and given to its shareholders out of the company's current earnings. This usually happens four times a year. It can be a payment of cash, more stock, or property.
Federal Deposit Insurance Corporation (FDIC)
A federal agency that insures deposits in banks and savings institutions up to $100,000. Check out their web site at www.fdic.gov.
financial institution
A place which collects funds from the public and places them in financial assets, such as deposits, loans, and bonds.
A loan in which the interest rate does not change during the entire term of the loan.
Money earned through employment and investments.
Individual Retirement Account (IRA)
A retirement account for an individual that permits individuals to set aside up to $2,000 per year, with earnings tax-deferred until withdrawals begin at age 59½ or later (or earlier, with a 10% penalty).
The general price increase of goods and services in an economy.
A promise of repayment for specific losses in exchange for a periodic payment.
The fee charged by a lender to a borrower for the use of borrowed money.
Use money to make more money, usually with the understanding that risk is involved. Often done by purchasing items of value for income or capital appreciation, such as stocks, bonds, mutual funds, real estate, CDs, and collectibles.
An item of value purchased for income or capital appreciation.
long-term gain or loss
A capital gain or loss on an investment which was held for at least some minimum amount of time (often a year and a day). A long-term gain usually results in a lower tax rate than a short-term gain.
The date on which a debt becomes due for payment.
Legal tender, cash.
mutual fund
An open-ended fund operated by an investment company which raises money from shareholders and invests in a group of assets, in accordance with a stated set of objectives.
National Credit Union Administration (NCUA)
A federal agency that insures deposits in credit unions up to $100,000. Visit their website at www.ncua.gov.
A collection of investments all owned by the same individual or organization.
A time when you stop working and having a job, and start living off your wise investments.
rule of 72
The estimation of doubling time on an investment, for which the compounded annual rate of return times the number of years must equal roughly 72 for the investment to double in value.
savings account
A deposit account at a bank or savings and loan which pays interest, but cannot be withdrawn by check writing.
savings and loan (S&L)
A federally or state chartered financial institution that takes deposits from individuals, funds mortgages, and pays dividends.
An investment instrument issued by a corporation, government, or other organization which offers evidence of debt or equity.
short-term gain or loss
A capital gain or loss on an investment which was held for less than some minimum amount of time (often a year and a day). A short-term gain usually results in a higher tax rate than a long-term gain.
A certificate that signifies an ownership position, or equity, in a corporation, and represents a claim in the corporation’s assets and profits.
stock dividend
A dividend paid as additional shares of stock rather than as cash.
One who owns shares of stock in a corporation or mutual fund. For corporations, along with the ownership comes a right to declared dividends and the right to vote on certain company matters, including the board of directors.
stock market
General term for the organized trading of stocks through exchanges.
A transaction of a security or commodity.
Removal of funds from a place of deposit or investment.